The Australian Tax Office is trying to tax the Cryptocurrency as well as Bitcoin investors. Currently, there is no strong regulatory framework when it comes to taxing cryptocurrency is in Australia. This is the reason why very few investors have actually disclose their cryptocurrency Holdings.
Huge taxation loss:
According to the Australian Tax Office, now they will be paying more attention to cryptocurrency trading as well as Bitcoin holding. According to Mark Chapman who is Director of tax communication at H&R, owing to the lack of compliance by cryptocurrency traders, Australia’s losing $ 2.5 billion each and every year.
According to the tax authorities, they have created a 100 point system in order to mine the data regarding cryptocurrency holders as well as traders. This will identify the investors as well as traders. Many people are even not aware whether they have to pay any taxes on Bitcoin trading or not. Also, the regulations are pretty opaque when it comes to cryptocurrency taxation
The Australian tax office stated recently that Bitcoin, as well as other cryptocurrencies, are subject to capital gains tax. They are subject to tax just like any other asset class. A report by the Australian Tax Office also clearly states that Bitcoin and other cryptocurrencies cannot be considered as foreign currency or money at all. They are just to be considered like any other asset.
With the taxation of cryptocurrencies coming into account, it remains to be seen whether banks like CBA who recently banned cryptocurrency investments with its credit cards reverses the move or not. Brisbane airport became the 1st airport in the world recently to accept cryptocurrencies.
Thus, when it comes to innovation related to cryptocurrencies, many businesses in Australia are actually far ahead of the competitors. The taxation on cryptocurrencies, however, is on the lower side. Many of the individuals do not comply with the current tax laws. Only 0.04% of US citizen actually pay tax on cryptocurrency Holdings or cryptocurrency trading. This is the reason why authorities all over the world are trying to find ways in which they can tax the cryptocurrency traders.
With the volume of cryptocurrency trading increasing, authorities will be able to gain a significant amount of money if they are able to tax the cryptocurrency traders. This is the reason why authorities do not want to leave anything to chance. They are putting pressure on the cryptocurrency traders to file the tax returns by themselves.